U.S. retail sales rose 1.1% in February

Americans stepped up spending on retail goods in February, evidence that a stronger job market is providing a boost to the economy. Consumers bought more autos, clothes and appliances. They also paid more for gas. A Commerce Department report out today shows retail sales increased 1.1% last month, the biggest gain since September. The government also upwardly revised the previous two months’ spending figures. Some economists say the February increase and revisions could lead to faster economic growth. It could also put pressure on Chairman Ben Bernanke of the Federal Reserve to rethink the central bank’s plan to hold interest rates at record lows until at least late 2014. The Fed is holding a one-day policy meeting today. A 3.3% rise in gasoline sales—the biggest increase in a year—helped boost last month’s overall increase. Retail sales still increased a solid 0.8%, excluding gas sales. Auto sales rose 1.6% and department stores increased 1.5%—the largest gain since November 2010. Sales at appliance and electronics stores rose 1%. The February gain pushed total sales to a record $407.8 billion: That’s 20.1% higher than the recession low hit in March 2009. The government report reflected private data released earlier this month. U.S. automakers reported having had the best annual sales pace in four years in February, despite the surge in gas prices. Retail merchants reported a 6.7% increase in sales in February compared with the same month a year ago, according to the International Council of Shopping Centers’ tally of 21 retailers.